OBJECTIVESUpon completion of this chapter, you should be able to:■ Understand the relationship between shop personnel and the customer.■ Know how to treat customers so that they will have confi dence in your repair business.■ Interview a customer to fi nd the true cause of an automotive problem.■ Produce a professional repair order.■ Understand how parts are priced by various segments of the industry.
Shop Management, Service Records,
and Parts
INTRODUCTIONThis chapter is about business practices. It describes such things as customer relations, fi lling out repair orders, and interviewing customers regarding prob-lems with their cars. Also included is an explanation of how businesses buy parts and the discounts involved.
CUSTOMER RELATIONSAutomotive repair shops would not remain in busi-ness for long if they did not make a profi t. Good rela-tions with customers is the key to a successful business. A fi rst impression with a customer is important so he or she is confi dent in the repair abilities of the shop (Figure 4.1). Except for dealerships, most technicians will occasionally communicate directly with customers.
Dealerships have professional salespersons who greet the customer and write up the repair order. They are called service writers or service advisors. When a customer does not have a complaint about a car’s Figure 4.1 The customer’s fi rst impression is important.
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48 CHAPTER 4
The signature of the customer gives approval for the repair and agrees to pay for the shop’s services when the job is completed.
Repair orders are numbered for future reference. Also entered on the repair order are the 1. Odometer mileage
2. Vehicle make (Ford)
3. Vehicle model (Mustang)
4. Vehicle model year (2009)
5. Vehicle license number (1VAL239)
Information that will identify the customer includes his or her name, address, and telephone numbers for home, cell, and business.
A space for labor instructions is located below the customer information area.
This area will be fi lled in with the customer’s com-plaint, possible cause(s), and repairs to be performed.
The three items on the repair order are called the “3 Cs”: concern, cause, and
correction.
SHOPTIPSHOPTIP
Customers will need to be questioned carefully about the symptoms. They often have an incorrect precon-ceived notion of what is wrong.
The following are examples of possible questions that could be asked if the customer complains that the vehicle runs hot: 1. Does it become hot right away after it is started?
2. Does it become hot only at freeway speeds?
3. Does the radiator consume coolant?
4. Does it become hot enough to boil over?
5. Have you heard any unusual noises from the engine?
performance but is simply seeking preventive mainte-nance, the customer experience is usually satisfactory. One major cause of customer dissatisfaction, however, is when the customer must return again in order to have the original problem corrected. In fact, in several surveys, the percentage of complaints not correctly diagnosed and repaired on the initial visit is nearly half. This problem can often be traced to faulty diag-nosis by an undertrained service writer.
Service writing in smaller shops is usually done by the owner, who is often also a technician. In this case, the customer gets to speak directly with the techni-cian about the problem with the vehicle, which often results in a satisfi ed customer after only one trip to the shop. Part of the solution to the problem for larger shops is to hire service writers who understand the operation of the various systems of the car.
Telephone ServiceAlthough the owner or manager of a business often answers the telephone, technicians in small shops usu-ally share telephone responsibilities also. The phone should be answered promptly and courteously, stating the name of the business and the person who is speaking.
Most often there is a phone extension in the repair area. Although it is sometimes an annoyance to have to stop work on a job to answer a telephone call, the phone is an important source of business. The tele-phone often presents the customer with his or her fi rst impression of the business. If the customer’s fi rst impression is that the business is professionally man-aged, things will go easier from that point on.
Remember: There is no second chance to make a fi rst impression!
SERVICE RECORDSA service record is written for every car that enters a repair facility. A multiple copy, numbered service record, repair order (R.O.), or work order (W.O.) is used for legal, tax, and general recordkeeping purposes. One of the copies of the R.O. is given to the technician. It lists the repairs needed and is used for making nota-tions of repairs completed and items needing atten-tion. One of the copies of the repair order is for the customer and includes the cost estimate. The remain-ing copy is for the shop’s fi les.
The repair order (Figure 4.2) is important for several reasons. It is a legal document that 1. Fully identifies the customer and the vehicle
2. Gives the technician an idea of the reason the car is in the shop for repairs
3. Tells the hourly shop labor rate
4. Provides the customer with an estimate of the cost of the repair
5. Lists the estimated time the vehicle will be ready for the customer
Figure 4.2 A repair order.
VEHICLE IDENTIFICATION NUMBER (VIN): YEAR:
MODEL:
LICENSE NO: REPAIR ORDER NO: TERMS:
Cash
Credit Card
Prior Approval
:EGAELIM :ROLOC :SSERDDA/EMAN REMOTSUC R.O. DATE:
ADVISOR: CALL WHEN READY
YES NO
RESIDENCE PHONE: BUSINESS PHONE: PRELIMINARY
ESTIMATE:
CUSTOMER SIGNATURE
HAT NO:
SAVE REMOVED
PARTS FOR
CUSTOMER
YES NO
TIME RECEIVED: DATE/TIME
PROMISED:
REVISED
ESTIMATE:
:TSOC LANOITIDDA :NOSAER
CUSTOMER PAY
WARRANTY
:EMIT :ETAD :YB DEZIROHTUA
IN PERSON PHONE #
WE USE NEW PARTS UNLESS
OTHERWISE SPECIFIED.
TEARDOWN ESTIMATE. IF THE CUSTOMER CHOOSES NOT TO AUTHORIZE THE
SERVICES RECOMMENDED THE VEHICLE WILL BE REASSEMBLED WITHIN ____ DAYS
OF THE DATE OF THIS REPAIR ORDER.
ADDITIONAL COST (TEARDOWN ESTIMATE):
LABOR INSTRUCTIONS
CUSTOMER STATES:
CHECK AND ADVISE:
REPAIR(S) PERFORMED:
WE DO NOT ASSUME RESPONSIBILITY FOR LOSS OR DAMAGE OF ARTICLES LEFT IN YOUR VEHICLE. PLEASE REMOVE ALL PERSONAL PROPERTY
______ CUSTOMER RENTAL
______ COURTESY VEHICLE
______ SHUTTLE
MAKE:
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Shop Management, Service Records, and Parts 49
KEEP THE CAR CLEANBe sure that your hands, shoes, and clothing are clean before getting into a customer’s car. A dirty steering wheel or carpet will guarantee an unhappy customer, no mat-ter how good the quality of the repair work. Work shoes often have grease on their soles. Many shops use carpet mats made of paper to help keep a customer’s carpet clean (Figure 4.4). Some shops use seat covers as well.
Fender CoversFender covers are used whenever underhood work is done (Figure 4.5). Greasy hands or brake fl uid can ruin the fi nish on a vehicle. Fender covers also protect against scratches from items like belt buckles. Cars cost many thousands of dollars. When working on a vehi-cle, be sure to respect it as much as the owner does.
LINEN SERVICEMost shops have weekly linen service for shop towels and uniforms. The shop is billed for the cost of any shop towels that show signs of acid exposure. Shop
6. Has the cooling system had recent service?
7. Has the ignition system been serviced recently?
Many businesses use a structured format when ques-tioning a customer and listing concerns. 1. First, ask for a general description of the problem.
2. Ask whether it happens in the front, back, or under the hood.
3. Identify symptoms: Do you hear, feel, or smell something?
4. With the information you have learned, use your technical skills to identify the problem.
Computer RecordsService and repair facilities use personal computers for keeping records, maintaining a running inventory and ordering parts, and tracking employee productiv-ity. Notes saved in memory can include personal notes regarding a particular customer and what occurred during his or her most recent visit to the shop.
■■ COMPUTER NOTE ■■
A computer locates a customer’s records using the vehicle’s license number, the owner’s name, or the owner’s address. The license number is the most popular means of access.
Although a shop may keep computer records, a hard copy is often printed for use by the technician. Some shops also have a networked computer terminal in the service bay (Figure 4.3). This can save paper.
It is important that a shop keep written records of all repairs and recommendations. Litigation (court cases) often results in a losing case due to a lack of adequate records. A completed R.O. includes a writ-ten estimate of the cost of the repair and a record of phone conversations with an owner when an earlier approved estimate needs to be updated.
Figure 4.3 Automotive repair businesses use personal computers for shop management activities.
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Figure 4.4 A carpet mat protects the car’s carpet from grease.
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Figure 4.5 Fender covers are used when working under the hood.
Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
50 CHAPTER 4
less than 0.1 unit of sale per year. An average parts store will carry parts listed as code 1 through code 5. This will provide a parts inventory of about 75% of full coverage. Parts that are not often sold increase the cost of doing business. These parts will have to be marked up by a higher percentage in order to compensate.
Services provided to customers are often a prime element in gaining repeat business. Prompt delivery of phoned-in parts orders is provided to regular whole-sale customers. Sometimes a parts jobber will have a machine shop that performs jobs like engine and brake machining, fl ywheel surfacing, hydraulic press work, and hydraulic hose fabrication.
Retail Chain StoresMany parts retailers are managed by national or regional retail chains. Chain stores usually deal in faster-moving items like alternators, starters, tools, and car accessories. They often do not have as large an inventory of diverse parts as a jobber store. Some retail stores are owned by one or several owners, but they buy everything through the distribution system of the main company. Prices, especially on sale items, are sometimes lower than retail.
towels are often dyed red. When they are exposed to battery acid or other acids, they turn blue. This alerts the linen service to the probability that the rags will disintegrate during laundry service (Figure 4.6).
Some shops purchase their own uniforms. Other times they are rented from the linen service. Linen service can include shirt and pants service. Shop coats, coveralls, and jackets are also available. Shop clothing is often made of materials resistant to battery acid.
WHOLESALE AND RETAIL DISTRIBUTION OF AUTO PARTS
The following section familiarizes the reader with some of the terms used in the automotive service business. Approximately one in every six jobs in North America is related to the automobile. The automotive aftermarket is supplied from the manufacturer to the customer through a large parts and service distribution system (Figure 4.7). The original equipment manufacturers (OEMs) and a large number of independent parts manu-facturers sell parts to over 1,000 warehouse distributors (WDs) throughout the continent. Warehouse distribu-tors are large distribution centers that sell to auto parts wholesalers, known in the industry as jobbers.
JobbersJobbers (Figure 4.8) sell parts, accessories, and tools to different markets. More than one-half of a typical job-ber’s customers are independent repair shops and ser-vice establishments. Fleet companies; farmers; trade and industrial accounts; and, occasionally, new car dealer-ships are some of a jobber’s other customers. Do-it-yourself (DIY) customers account for over one-fourth of a typical jobber’s business customers. Some parts, such as fi lters and ignition parts, sell in higher volume. In the DIY market, fi lters (oil, air, and fuel) account for over half of all parts sales. Parts manufacturers use codes to tell which parts average more units of sale than others (Figure 4.9). For instance, code 1 parts average 4 or more units of sale per year, while code 8 parts average
Figure 4.6 This shop towel was damaged by battery acid.
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Shop Management, Service Records, and Parts 51
not uncommon for dealerships to deliver parts to inde-pendent repair shops within a 50-mile radius in some markets. Although they are competitors, indepen-dent parts establishments often have a give-and-take arrangement with the dealers, supplying each other with parts when they are needed in a hurry.
Service Stations and Independent ShopsService businesses are very concerned with the cost of high-volume parts. A shop that sells fi ve oil fi lters a day might be able to purchase them in quantity at half the cost and keep them in stock (on the premises). The same holds true with tires, batteries, and accessories (TBA). Service stations often buy TBA at very good discounts through the oil company whose products they sell. A higher volume shop will often have computerized inventory, where parts are automatically ordered over the Internet as the supply falls below a certain level.
Parts PricingPrices are usually determined by the price the jobber pays. The ability to fi nd good prices on parts is an important part of a jobber’s business. Jobbers are some-times affi liated with cooperative groups. This gives them the ability to band together so that they can secure better prices by buying in huge quantities. They still continue to be independent owners, however, and may buy from whomever they choose.
Parts are priced to the customer according to list, net, or variable pricing (Figure 4.11). The list price, also called the retail price, is the suggested price of an item and is what the customer paying for car repair pays. In reality, very few stores charge list price to the walk-in DIY customer. Most parts are discounted, although in varying amounts. The net price is the price that the wholesale auto repair customer pays.
Some items like oil, oil fi lters, and coolant, are priced by most establishments with little or no markup, because most customers are aware of their prices. These parts, called loss leaders or cost leaders, are considered to be part of the cost of promoting a
Mass merchandisers, like large department store chains, sell fast-moving, popular items like oil and fi lters, windshield wipers, and spark plugs to the DIY market. They often have a large service facility for doing mainte-nance and minor repairs on automobiles (Figure 4.10).
Dealership Parts DepartmentsAuto dealers have their own parts departments with a large organized inventory of original parts. Dealer parts departments usually have a separate counter for the technicians who work in the shop. Some dealer-ships have phone connections or an intercom in the service bay so the technician can call in a parts order before walking to the parts counter. Some dealerships have personnel who bring the cars to the service bay for the technician. This is one way that the technician can be more productive in a busy shop.
The operation of a dealership’s parts business is often determined by its owner. Some dealers are very aggressive in pricing and services offered to the inde-pendent market and others are not. Discounts are offered in varying degrees to wholesale accounts. It is
Figure 4.9 Probability of sale by part class.
Aft
erm
arke
t A
uto
Part
s A
llian
ce
Figure 4.10 Mass merchandisers often have large service facilities.
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52 CHAPTER 4
business (Figure 4.12). Variably priced items are those that are slow movers and not readily available to the customer. These can be marked up a larger amount to help compensate for cost leaders.
When a service or repair business (installer) buys auto parts from a jobber, the price the installer is charged is sometimes dependent on the volume of business that the installer does with that parts estab-lishment. More volume on a monthly basis can mean a higher percentage of discount to the shop. The part is marked up to the retail price for the customer who brings in a car for repair. This system can make a differ-ence in the profi tability of a service business.
Replacement PartsFactory replacement parts are categorized as original equipment (OE). Stock means the part is the same as intended by the manufacturer. Aftermarket is a broad term that refers to parts that are sold by the non-OE market. Many OE parts are manufactured by the same manufacturer as aftermarket parts.
1. What are three names for the written record that is kept of a customer’s service visit?
2. What is the most popular way of identifying a customer when entering information into the computer?
3. List two things that fender covers protect the paint from.
4. What are wholesale parts sellers called?
5. What does DIY stand for?
6. What does TBA stand for?
7. What is another name for list price?
8. The price that a wholesale business pays for a part is called _________ pricing.
9. What does OE mean?
10. _________________ is a broad term that refers to parts that are sold by the non-OE market.
REVIEW QUESTIONS
Technician B says that shop clothing is often made of materials that are resistant to battery acid. Who is right?
a. Technician A c. Both A and B
b. Technician B d. Neither A nor B
4. Which of the following is/are listed on a repair order?
a. The concern c. The correction
b. The cause d. All of the above
5. All of the following could be a source of irritation to a customer except:
a. Grease on a fender
b. Grease on the carpet or seat
c. Grease on the steering wheel
d. Grease on a wheel bearing
1. Technician A says that using a computer to generate a repair order can sometimes save paper. Technician B says that a hard copy of a repair order is needed for the customer, and often for the technician. Who is right?
a. Technician A c. Both A and B
b. Technician B d. Neither A nor B
2. Technician A says that a repair order contains a written estimate of the cost of a repair. Technician B says that a repair order lists a record of telephone conversations with the customer. Who is right?
a. Technician A c. Both A and B
b. Technician B d. Neither A nor B
3. Technician A says that red shop towels turn blue if they come into contact with battery acid.
ASE-STYLE REVIEW QUESTIONS
Figure 4.12 Oil, oil fi lters, and coolant are loss leaders or cost leaders.
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Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
